Princeton IV H Plan

Carencro, LA 70520

$216,990F

3 bd · 2.0 ba · 1,422 sqft · Built — · SingleFamily · Active · 953 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,386/mo
• Mortgage (P&I): −$1,326
• Tax + insurance: −$422
• HOA: −$0
• Vac / Maint / Mgmt: −$291
• Net cashflow: $-653/mo
• Annual: $-7,839/yr
• Cap rate: 3.19%
• Cash-on-cash: -11.07%
• DSCR: 0.51
• 1% rule: 0.55%
• Cash to close: $70,820

Investor read

• This is a 3-bed/2.0-bath single-family listed at $217k. Condition is rated excellent.
• At list price, monthly cash flow is $-653 ($-8k/yr) — negative.
• To cash-flow at today's rent, offer at most $158k (27.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $139k (36.1% below list).
• It's been on market 953 days — a 12% lower offer ($191k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $139k (36.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#65 in LA) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: employment C-, crime D, amenities F.
• Lafayette Parish (urban): math 38% / reading 46% proficiency, ranked #19 of 98 in LA (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: J. Wallace James Elementary School (math 46% / reading 49%, grade D, #147 of 646 statewide, top 23%, 939 students, 64% FRL); Carencro Middle School (math 18% / reading 28%, grade F, #145 of 218 statewide, top 69%, 665 students, 75% FRL); Carencro High School (math 30% / reading 29%, grade F, #127 of 265 statewide, top 49%, 1,096 students, 69% FRL).
• Market conditions: 372 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals lingering (median 117d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 57% of comp listings sitting > 30 days — soft ceiling on asking rent; 1,585 units permitted in Lafayette Parish in 2024 (10 in 5+ unit buildings).
• Lafayette County population projected at +34% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 3.2% vs local median 4.7% in Carencro — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 953 days. Have you received any prior offers? Is the seller open to a 36% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.